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28 April 2025

Deutsche Telekom Stock Faces Turbulent Week Ahead

Despite recent losses, analysts remain cautiously optimistic about future growth potential

The Deutsche Telekom stock is facing a turbulent week ahead, having lost 4.79% on Friday, April 25, 2025, and is now approaching the critical mark of 30 euros. Currently, the stock is hovering around 31.20 euros, depending on the exchange. Despite this recent downturn, analysts remain optimistic, with price targets set higher than the current market price.

Analysts note that the stock is in a clear upward trend, having exceeded the 200-day moving average by nearly 10%. However, concerns arise from the U.S. market, particularly regarding T-Mobile US, which has reported disappointing new customer numbers. The subsidiary managed to acquire only 495,000 new contract customers, falling short of expectations. Nevertheless, T-Mobile US reported positive figures in revenue and free cash flow, prompting the company to raise its forecast for 2025.

Deutsche Telekom is generally viewed as well-valued economically, but the issues arising from its U.S. operations are evident. The company is currently facing scrutiny for potential violations of market neutrality, which could lead to legal challenges in Germany. This situation has caused the stock to react negatively, with a decline of 4.45%, which is significantly weaker than analysts had anticipated. Currently, analysts have set their price target at around 37 euros, a goal that now seems challenging to achieve given the recent performance.

As of April 28, 2025, the Deutsche Telekom stock is showing little movement, trading at approximately 31.18 euros via XETRA. The stock climbed to a peak of 31.45 euros before dipping to 30.95 euros. On the day of trading, the stock opened at 31.43 euros, with over 1.8 million shares changing hands. In the past year, the stock reached a 52-week high of 35.91 euros on March 3, 2025, but it also saw a low of 21.46 euros on May 3, 2024, indicating significant volatility.

In the financial year ending December 2022, Deutsche Telekom reported a turnover of 114.20 billion euros and a profit of 16.20 billion euros. The company had approximately 198,194 employees worldwide at the end of 2022. For 2024, investors received a profit share of 0.900 euros, with a dividend estimate of 1.00 euros for the current year.

Analysts have expressed a slightly optimistic outlook for the company, citing potential growth from new products, despite the intense competition in the market. The stock has tested the 200-day moving average successfully, but the 50-day moving average has capped its upward potential. Currently, the stock price is caught between a support zone around 30 euros and a resistance zone just under 34 euros, making its future movements uncertain.

Market analysts are closely monitoring the situation, especially after Deutsche Telekom's recent quarterly figures presented on February 26, 2025, which showed earnings per share of 0.85 euros, a significant improvement from the previous year's loss of 0.21 euros per share. The turnover for the quarter was reported at 30.93 billion euros, marking a 5.32 percent increase compared to the previous year's quarter.

Looking ahead, Deutsche Telekom's Q1 2025 financial results are scheduled for May 15, 2025, and analysts expect the Q1 2026 figures to be released on May 7, 2026. Predictions indicate that the company could report a profit of 2.02 euros per share in 2025, reflecting a positive trajectory despite current challenges.

The market sentiment around Deutsche Telekom remains mixed. While the stock has shown resilience in the past, recent developments in the U.S. market and the legal challenges it faces could pose significant hurdles. Investors are now left wondering whether to buy or sell their shares. A new analysis released on April 28, 2025, emphasizes the urgent need for action among Deutsche Telekom shareholders, urging them to weigh their options carefully.

As Deutsche Telekom navigates these turbulent waters, the outlook remains cautiously optimistic. The company's ability to adapt to market conditions and leverage its strengths in the telecommunications sector will be crucial in determining its future performance. Investors and analysts alike will be watching closely as the company works to address the challenges posed by its U.S. operations while capitalizing on growth opportunities in the European market.

In summary, Deutsche Telekom's stock is currently facing significant challenges, particularly from its U.S. subsidiary, T-Mobile US. While analysts maintain a degree of optimism about the company's overall valuation and growth potential, the immediate outlook is clouded by recent performance and external pressures. Investors will need to stay informed and vigilant as they consider their next steps in this fluctuating market.